RMBS: Not All EPCs Created Equal


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Energy Performance Certificates (EPCs) were designed to help improve the general energy performance of buildings in a transparent and comparable manner across Europe. DBRS Morningstar finds lack of consistency around EPC regimes across various countries and, in this commentary, we explore the deviation of various EPC regimes across Europe, the scarcity of consistent data, and the potential impact on the European residential mortgage-backed securities (RMBS) market.

DBRS Morningstar examines whether EPC considerations could lead to greater or lower default and impact recovery rates for securitised assets, or whether EPC-efficient assets might improve affordability, financing capacity, or future values.

DBRS Morningstar envisages a strong market for green RMBS transactions in the years to come and expects data on the energy performance of buildings, including government-sponsored EPCs, to play an increasingly prominent role in its credit rating analysis.

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RMBS: Not All EPCs Created Equal

Mar 13, 2023